The federal government's banks: Financial services and public policy.

Abstract: Internationally, interest in and research on state‐owned enterprises (SOEs) have increased significantly, particularly in the developing world, where they play a vital role in national economies. The evolution of Canadian SOEs is, for the most part, largely absent from this literature. This article analyzes and evaluates the performance of three SOEs in the financial sector owned and operated by the federal government: Export Development Canada (EDC), the Business Development Bank of Canada (BDC) and Farm Credit Canada (FCC). The article seeks to evaluate the performance of these commercially oriented hybrid entities which are policy (and politically) sensitive to the needs of their single shareholder. There is evidence that these firms take on higher‐risk investments than their private sector counterparts, in addition to performing other politically significant policy roles. There is also evidence that, as publicly owned entities, they enjoy some significant advantages over other actors in the sector. [ABSTRACT FROM AUTHOR]